[Funding alert] MSME lender Vistaar Finance raises $30M from FMO
Bengaluru-based financial services startup Vistaar Finance announced on Tuesday, December 1, 2020 that it has raised $30 million (approximately Rs 225 crore) External Commercial Borrowing (ECB) from Dutch entreprneural development bank FMO.
According to a statement issued by the company, the funds will be deployed to lend small businesses across the country.
Executive Vice Chairman of Vistaar Finance, Brahmanad Hegde, said:
“This funding helps underline the core objectives of Vistaar and FMO of lending to small businesses to support their sustainable growth. Onward lending of these funds to small businesses contributes directly to Government of India initiatives like ‘Make in India’ and ‘Atmanirbhar Bharat’."
Founded in 2010, by Brahmanad and Ramakrishna Nishtala, Vistaar focuses on online lending to SMEs. It has raised almost $76 million in funding so far. It is backed by the likes of Elevar Equity, Saama Capital, WestBridge Capital, and Omidyar Network India Advisors.
Vistaar is non-deposit-taking NBFC focused on lending to small businesses through its network of more than 200 branches. Vistaar has assets of close to Rs 2,000 crore under its management. It's lender base includes public sector banks, private sector banks, mutual funds, international development agencies and large financial institutions.
"This fundraising is a strong endorsement of Vistaar’s sustainable business model, risk management capabilities even during a pandemic, its ability to grow in the current challenging and critical times, as well as strong shareholding," Brahmanad added.
In the last seven months, Vistaar has raised more than Rs 550 crore of debt financing. This is the second line of funding from FMO.
Dutch entrepreneurial development bank FMO invests in over 85 countries, supporting jobs and income generation, and improving people's lives in those parts of the world where it makes the biggest difference. In India, it has invested in WayCool Foods, BananyanTree India Growth Capital, and Orb Energy, among others.